Q&As

A tenant has served a break notice. The break option is conditional on providing vacant possession. The parties have agreed that the tenant can leave some equipment behind. To avoid the landlord arguing that the break option has failed, is it possible to document the waiver of the condition to provide vacant possession?

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Published on: 23 October 2019
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This question raises the requirement to comply with the terms of a break clause if a tenant is to bring a tenancy to an end. The courts are quite strict when it comes to determining when it has to be exercised. Time is of the essence as is compliance with the terms of the clause. As Lord Diplock put it in the House of Lords decision in United Scientific Holdings Ltd v Burnley Borough Council; Cheapside Land Development Co Ltd v Messels Service Co:

‘The exercise of this option by the tenant will have the effect of depriving the landlord of the existing source of income from his property and the evident purpose of the stipulation as to notice is to leave him free thereafter to enter into a contract

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Jurisdiction(s):
United Kingdom
Key definition:
Vacant Possession definition
What does Vacant Possession mean?

Property sold with vacant possession must be empty of existing tenants or other occupiers (whether or not occupation is authorised), and all goods and rubbish (subject to the de minimis rule) that substantially prevent or interfere with the enjoyment of a substantial part of the property on or before completion.

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